Honda Motor announced on Friday that it would implement an 11% pay increase for production workers at its U.S. facilities starting in January. This decision comes shortly after the United Auto Workers (UAW) union and the Detroit Three automakers reached new contracts. Additionally, Honda confirmed that it would reduce the time it takes for a worker to reach the top-wage tier from six years to three, as reported by the Wall Street Journal.
Pressure has been mounting on non-unionized automakers like Honda to improve pay and benefits following the UAW’s successful negotiations with the Detroit Three automakers. Honda, which has been manufacturing in America since 1979, currently operates 12 plants in the country, producing five million products annually. The company employs over 23,000 workers in the United States.
Honda’s decision to increase wages follows a similar move by Toyota, which announced last week that it would raise the wages of its non-union U.S. factory workers. General Motors, Ford Motor, and Stellantis, the parent company of Chrysler, have also agreed to raise employee base wages by 25% and reinstate cost of living allowances (COLA) in their contracts with the UAW.
Currently, union workers are voting on contracts from the Big Three automakers in Detroit. The UAW has expressed its intention to build on its bargaining successes by launching organizing campaigns at non-union U.S. auto factories, including those of Toyota and Tesla.
Honda had previously stated that it was evaluating the UAW’s recent deals with the Detroit Three automakers and would strive to remain competitive.
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